# Premium subject to reporting for a debt instrument acquired on or after January 1, 2014.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Notice of proposed rulemaking by cross-reference to temporary regulations.
**SUMMARY:**
In the Rules and Regulations section of this issue of the *Federal Register* , the IRS is issuing temporary regulations relating to the reporting of bond premium and acquisition premium. The text of those regulations also serves as the text of these proposed regulations.
**DATES:**
Written or electronic comments must be received by July 17, 2013.
**ADDRESSES:**
Send submissions to: CC:PA:LPD:PR (REG-154563-12), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-154563-12), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC, or sent electronically via the Federal eRulemaking Portal at *www.regulations.gov* (IRS REG-154563-12).
**FOR FURTHER INFORMATION CONTACT:**
Concerning the proposed regulations, Pamela Lew, (202) 622-3950; concerning submissions of comments, Oluwafunmilayo (Funmi) Taylor, (202) 622-7180 (not toll-free numbers).
**SUPPLEMENTARY INFORMATION:**
**Background and Explanation of Provisions**
Temporary regulations in the Rules and Regulations section of this issue of the *Federal Register* amend the Income Tax Regulations (26 CFR part 1) relating to section 6049. The temporary regulations set forth information reporting requirements related to bond premium and acquisition premium. The text of the temporary regulations also serves as the text of these proposed regulations.
**Consideration of Administrative Burdens Related to Basis Reporting**
A number of commenters have indicated that compliance with basis reporting requirements and the use of basis and other information reported by brokers will require considerable resources and effort on the part of return preparers and information recipients. The Treasury Department and the IRS are continuing to review all aspects of the information reporting process and are exploring ways to reduce the compliance burden for both brokers and for information recipients.
**Special Analyses**
It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking has been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses.
**Comments and Request for Public Hearing**
Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS as prescribed in the preamble under the “ *ADDRESSES* ” heading. The Treasury Department and the IRS welcome comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available at *www.regulations.gov* for public inspection and copying. A public hearing may be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for a public hearing will be published in the *Federal Register* .
**Drafting Information**
The principal author of these regulations is Pamela Lew, Office of Associate Chief Counsel (Financial Institutions and Products). However, other personnel from the IRS and the Treasury Department participated in their development.
**List of Subjects in 26 CFR Part 1**
Income Taxes, Reporting and recordkeeping requirements.
**Proposed Amendments to the Regulations**
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
**PART 1—INCOME TAXES**
*Paragraph 1.* The authority citation for part 1 is amended by adding an entry in numerical order to read in part as follows:
**Authority:**
26 U.S.C. 7805 * * * Section 1.6049-9 also issued under 26 U.S.C. 6049(a). * * *
*Par. 2.* Section 1.6049-9 is added to read as follows:
§ 1.6049-9
[The text of proposed § 1.6049-9 is the same as the text of § 1.6049-9T published elsewhere in this issue of the *Federal Register* ].
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.